Speaking of Taxes . . .
. . . Massachusetts just enacted a new tax associated with the Massachusetts Paid Family and Medical Leave Act. Beginning in January of 2021 most workers in Massachusetts will be eligible to get up to 12 weeks of paid family leave and up to 20 weeks of paid medical leave. The program will be funded by premiums paid by employees, employers, and the self-employed.
The employer has the option of paying a minimum of 60% up to 100% of the premiums. The cost for a typical employee if we pay 60% is $250-$500 per year depending on how much they make. It doesn't sound like much, but it adds up, especially since Massachusetts has a 5.1% income tax.
As part of our firm's management committee, I voted not to pay a penny more than our minimum obligation of 60%. On other things like insurance premium increases or 401(k) benefits, I typically vote to be generous. However, 95% of our employees (we're in Cambridge) most likely voted for the representatives who enacted this nonsense, and they need to understand that there are consequences for their votes. Someday, Massachusetts will drive out employers, much like New Jersey, New York and Connecticut.
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